Question: Gemini Inc.'s optimal cash transfer amount, using the Baumol model, is $60,000. The firm's fixed cost per cash transfer of marketable securities to cash is

Gemini Inc.'s optimal cash transfer amount, using the Baumol model, is $60,000. The firm's fixed cost per cash transfer of marketable securities to cash is $120, and the total cash needed for transactions annually is $960,000. On what opportunity cost of holding cash was this analysis based?

a. 9.2% b. 10.7% c. 6.4% d. 12.1% e. 9.6%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Gemini Inc.s optimal cash transfer amount, using the Baumol model, is $60,000. The firms fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash...

Q:

Gemini Inc.s optimal cash transfer amount, using the Baumol model, is $60,000. The firms fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash...

Q:

Gemini Inc.s optimal cash transfer amount, using the Baumol model, is $60,000. The firms fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash...

Q:

Gemini Inc.s optimal cash transfer amount, using the Baumol model, is $60,000. The firms fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash...

Q:

opportunity coin of helling ceste was the and lyals baised? +fx b. ses 0.12.14 Gemini Inc's optimal cash transfer amount, using the Baumol model, is $60,000. The firm's fixed cost per cash transfer...

Q:

Maya's Inc.'s optimal cash transfer amount, using the Baumol model, is $55,385. The firm's fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash...

Q:

Question 4 Your older brother turned 35 today, & he is planning to save GH7,000/year for retirement, with the first deposit to be made one year from today. He wil I invest in a mutual fund that's...

Q:

Company B ' s optimal cash transfer amount, using the Baumol model, is $ 6 0 0 0 0 . The firm's fixed cost per cash transfer of marketable securities to cash is $ 1 9 5 , and the total cash needed...

Q:

Question 6 FINC 301's optimal cash transfer amount, using the Baumol model, is GHS 60,000. The firm's fixed cost per cash transfer of marketable securities to cash is GHS 180, and the total cash...

Q:

FINC 301's optimal cash transfer amount, using the Baumol model, is GHS 60,000. The firm's fixed cost per cash transfer of marketable securities to cash is GHS 180, and the total cash needed for...

Q:

X delivers some goods to Y on Sale or returns for 7 days. State the legal position in each of the following alternative cases: Case (a) such goods are destroyed by fire on the third day itself...

Q:

Why is a sample of radioactive material always a little warmer than its surroundings?

Q:

An acceptable net present value has a value: Group of answer choices equal to the IRR = or greater than 0 none of the answers is correct less than 0 = or less than 0

Q:

Question 2 2 When coaches obtain the necessary information from relevant players and then come to a decision, what type of decision style are they using? autocratic - consultative consultative -...

Q:

You have heard the expression, Its not what you know, its who you know, thats important. Do you agree? If it is true, is it fair?

Q:

This chapter lists six networking objectives (see Networking section). For which of these reasons (or for what other reasons) do you have to network?

Q:

According to the two-dimensional leadership style studies (Chapter 6), a leaders behavior toward followers can be classified as either initiating structure or consideration or both or neither (Ohio...